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Seoul shares seen higher ahead of U.S. data, Samsung guidance

SEOUL, April 1 (Reuters) - Seoul shares are likely to extend gains on Monday after reaching a three-week-high on optimistic expectations on key U.S. data and Samsung Electronics' earnings estimates due this week. But caution will linger about the Japanese yen's weakness, as the country's central bank is likely to start open-ended asset purchases immediately following a two-day rate review that ends on Thursday. South Korean inflation unexpectedly eased to a seven-month low in March and further below the central bank's target, official data showed on Monday, reinforcing expectations of fiscal and monetary stimulus that has supported Seoul shares last week. The Korea Composite Stock Price Index (KOSPI) closed up 0.6 percent at 2,004.89 points on Friday, but for the third quarter, it was up just 0.4 percent. "With the new quarter kicking off, there is little reason to sell South Korean stocks. Foreign selling has moderated, the KOSPI will try to stay above the 2,000-level and breach its previous high this week," said Seo Dong-phil, an analyst at IBK Investment & Securities. European and U.S. markets have shut for Easter Friday, and will reopen on Monday. The Institute of Supply Management's manufacturing survey and non-farm payroll figures, both for March, are due this week, while Samsung Electronics, the KOSPI bellwether, is also expected to announce its earnings guidance for the January to March period later this week. -------------------MARKET SNAPSHOT @22:28 GMT---------------- INSTRUMENT LAST PCT CHG NET CHG S&P 500 1,569.19 0.41% 6.340 USD/JPY 94.28 0.1% 0.090 10-YR US TSY YLD 1.852 -- 0.000 SPOT GOLD $1,596.81 -0.41% -6.630 US CRUDE $97.28 0.05% 0.050 DOW JONES 14578.54 0.36% 52.38 ASIA ADRS 135.70 -0.44% -0.60 ------------------------------------------------------------->S& P 500 ends at record closing high >Euro zone bid helps bonds stem quarter bleed >Euro edge down on Cyprus, Italy political deadlock >Oil settle higher, U.S. crude surge 5.9 percent inQ1 ---STOCKS TO WATCH--- **HYUNDAI MOTOR, KIA MOTORS, SSANGYONG MOTOR ** South Korean automakers plan to announce their global vehicle sales for March later in the day. **BUILDERS ** The South Korean government plans to announce measures aimed at stimulating the sluggish housing sector on Monday, media reports said. **STX PAN OCEAN ** An initial round of bidding to acquire a controlling stake in the South Korean bulk shipper failed to attract any bids, the company's largest shareholder STX Corp said on Friday. (Reporting by Hyunjoo Jin; Editing by Eric Meijer)